What are the risks associated with sustainable funds?
Sustainable funds can carry several risks, including market volatility, regulatory changes, and greenwashing.
Can you explain what greenwashing means?
Greenwashing is when a company exaggerates or falsely claims to be environmentally friendly to attract investors.
How do market conditions affect sustainable funds?
Market conditions can impact sustainable funds just like traditional funds, but they may be more sensitive to shifts in consumer preferences.
Are there specific sectors that are riskier for sustainable investments?
Yes, sectors like fossil fuels or companies with poor environmental records can pose higher risks for sustainable investments.
What should I consider before investing in a sustainable fund?
Consider the fund's performance history, management team, fees, and how well it aligns with your values and risk tolerance.
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